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diesel electric

dear WW team.If we had a boat built with a diesel electric system,ie.fischer panda electric drive motor and generator baring in mind the generator would power the whole boat aswell as the motor,could you use JUST red diesel(no main drive engine).many thanks. s.smith.

Asked by: stephen smith  | 10.58pm, Tuesday 19 January

WW says:

You can use red diesel, as can all boats... however, you would still be required to pay full duty on the proportion of fuel used to power the boat. It makes no difference as to how the boat is powered, as the energy comes from a diesel engine, with the motor and/or batteries acting as a torque converter.
Nice idea, and it would be up to you as to how you negotiated the duty split with your fuel provider, but any liquid fuel used for propulsion is subject to duty at road fuel levels, with a very few exceptions.

Mark Langley  | 12.57PM, Wednesday 20 January

Any energy produced by liquid fuels, which ultimately provides propulsion for private pleasure vessels, whether directly or indirectly, is covered for the regulations (see HMRC notice 554 (April 2009).
Supplier of red diesel can only supply rebated duty to resiential boats, with proof of residence, that are basically immobile. For all other users, the split between full rate and rebated fuel has to be negoiated,and a declaration made- or they are within their rights to not serve you fuel

Mark Langley  | 9.06PM, Wednesday 20 January

Readers say:

I'd check that very carefully with Customes & Revenue because I am sure I recently saw some correspondance that suggetsed that if the engien was generating electricity, for whatever purpose 9including propulsion) did not attract the extra duty. It seems there may be a loophole but check.

A P Brooks  | 7.04PM, Wednesday 20 January

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